Australian retailers will need to exploit new technologies such as 3D printing, augmented reality, location services, mobile wallets, big data analytics and machine-to-machine systems to appeal to consumers and compete successfully in future, according to industry experts.

Although retailers often get panned for their poor online experiences, there are many instances, in Australia and overseas, of the use of innovative IT to improve customer engagement.

Examples include Woolworths' and Sportsgirl's use of interactive advertising walls, Target's use of big data analytics in the US to, well, target customers more accurately with its advertising, and the use of iPads in restaurants and shops.

“Staying competitive in today's retail market is more challenging, thanks to increases in online spending and consumers' use of smartphones and mobile devices,” said HP market development manager David Choi.

“While there have been many predictions of the demise of bricks-and-mortar shops, the fact is, many consumers still want the in-store experience.”

This view is backed by market research, with a recent Ernst & Young report indicating that two-thirds of Australians sometimes prefer to shop at a bricks-and-mortar store, and National Australia Bank data indicating our online spending makes up just over 5 per cent of retail revenues.

But it also means innovation will be needed beyond just having an online store and social media strategy, along with a nice-looking shop and friendly staff, says IBM's global business services head of retail and consumer, Ian Wong. He says the tech-savvy consumer now holds the balance of power.

“In the next 12 months, the technologies to be adopted will be around providing digital interaction channels to the consumer, such as online stores, mobile apps, social communities, and register-less point of sale,” he said. “This will also include digitally enabling in-store sales associates in the form of mobile apps on tablets, kiosk and smartphones so that they can better serve the consumer.”

Improvements in the retail store of the future, however, won't be just a staff member holding a tablet. It will probably include the provision of store maps - for large retailers - to the consumer's mobile device with location-based and augmented reality services, along with mobile point-of-sale devices capable of accepting mobile wallets (cashless payments via a smartcard of smartphone).

The goal here is to help reduce customer searching and queueing times, embrace and leverage the mobility trend that has impacted traditional retailing, and re-envisage the concept of a store experience (for example, by potentially removing the cash register).

The future store may also include the deployment of digital signage that not only pushes targeted advertising, but which stores valuable customer demographic information through video capture that can be used for analysis later, and which actively seeks almost-real time customer feedback.

An example of this can already be found at Singapore airport, which uses touchscreens to ask passengers to rate the cleanliness of amenities. Instead of waiting for the usual cleaning rounds or criticisms from an irate traveller, Changi Airport staff are notified automatically when a facility receives a number of negative responses via the touch-panel interface.

IBM's Wong also pointed to the potential for 3D printing to allow consumers to have “personalised manufacturing” in the store of their choice, “instead of having to be shipped from factories”.

These are, of course, just a few possibilities among many that may happen. However, all will require a focus on systems integration between all of the customer “touch points” and the back-end infrastructure that increasingly includes machine-to-machine technologies in the supply chain and big data analysis tools.

“On the back end, we see technologies like distributed order management systems, which essentially is the matchmaker of orders and inventory, as a key enabler,” said Infosys' retail practice associate vice-president, Reggie George.

“But more prosaically, we are seeing retailers looking to contend with the far greater volume, variety and velocity of structured and unstructured data generated by new media and commerce.

"Every time consumers write a product recommendation online, visit a price-comparison site or 'like' a service on Facebook, they are leaving valuable data that can help retailers offer relevant discounts and offers. Even something very simple like a loyalty card presents a wealth of actionable of insights – if you have the systems to deliver those insights.”

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